Numerous studies have examined the health effect of retirement, retirement behavior, and not having assets saved for retirement, however, few have analyzed the mental health effects of running out of money during retirement. This study examines the likelihood of having mental health issues in retirement when an individual runs out of money. This research article utilizes five waves of the Health and Retirement Study, spanning from 2006 through 2014. The result suggests that individuals who are going to run out of money two years from now have an increase in the probability of having mental health issues. However, there is an even further increase in the likelihood of mental health issues when the individual actually has actually run out of money. The larger the drop in asset level (ex. $25,000 down to below $1,000 vs $5,000 down to below $1,000) the large probability of having mental health issues. With the United States currently living longer and choosing to retire earlier there increased the risk of running out of money in retirement. Which leads to an increased risk of having mental health issues throughout retirement.
Rich Man, Poor Man: The Policy Implications of Canadians Living Longer by Kevin S. Milligan, Tammy Schirle :: SSRNSeptember 16, 2018
A longevity gap between rich and poor has persisted over the years in Canada with significant policy implications, according to a new report from the C.D. Howe Institute. In “Rich Man, Poor Man: The Policy Implications of Canadians Living Longer” – the first study of long-term changes in longevity across earnings groups in Canada – authors Kevin Milligan and Tammy Schirle provide new evidence on the incomes and life expectancy of Canadians.
Every Crisis Has a Silver Lining? Unravelling the Pro-Cyclical Pattern of Health Inequalities by Income by Max Coveney, Pilar Garcia-Gomez, Eddy van Doorslaer, Tom Van Ourti :: SSRNSeptember 15, 2018
It is well known that income and health are positively associated. Much less is known about the strength of this association in times of growth and recession. We develop a novel decomposition method that focuses on isolating the roles played by government transfers versus market transfers on changes in income-related health inequality (IRHI) in Europe. Using European Union Survey of Income and Living Conditions (EU-SILC) panel data for 7 EU countries from 2004 to 2013, we decompose the changes in IRHI while focusing on possible effects of the 2008 financial crisis. We find that such inequalities rise in good economic times and fall in bad economic times. This pattern can largely be explained by the relative stickiness of old age pension benefits compared to the market incomes of younger groups. Austerity measures are associated with a weakening of the IRHI reducing effect of government transfers.
By 2013, the average Medicare beneficiary’s out-of-pocket spending on health care consumed 41 percent of the average Social Security check, according to Kaiser, which also estimated that the figure would rise.
Studies of intergenerational mobility have largely ignored health despite the central importance of health to welfare. We present the first estimates of intergenerational health mobility in the US by using repeated measures of self-reported health status (SRH) during adulthood from the PSID. Our main finding is that there is substantially greater health mobility than income mobility in the US. A possible explanation is that social institutions and policies are more effective at disrupting intergenerational health transmission than income transmission. We further show that health and income each capture a distinct dimension of social mobility. We also characterize heterogeneity in health mobility by child gender, parent gender, race, education, geography and health insurance coverage in childhood. We find some important differences in the patterns of health mobility compared with income mobility and also find some evidence that there has been a notable decline in health mobility for more recent cohorts. We use a rich set of background characteristics to highlight potential mechanisms leading to intergenerational health persistence.
The hypothesis that active community involvement is beneficial for health finds strong support in the medical literature and in most policy guidelines for active ageing in OECD countries. We test it empirically and find that voluntary work has a significant impact on several measures of mental wellbeing. When accounting for fixed effects, panel attrition, endogeneity, and reverse causality, the positive effect of voluntary work remains robust. For the first time in the literature, we calculate the monetary equivalent of mental wellbeing benefits of voluntary work with the compensating variation approach, and estimate them up to a maximum of around 9,500 euros per indicator. Our results imply that policies fostering voluntary work of the elderly would contribute to active ageing and the wellbeing of the elderly and reduce welfare costs for society.
Measuring Individual Economic Well‐Being and Social Welfare within the Framework of the System of National AccountsDecember 18, 2017
While the agenda of “beyond GDP” encompasses measurements that lie outside boundaries of the System of National Accounts, key aspects of individual well‐being and social welfare can be incorporated into an SNA framework. We bring together the relevant theoretical literature and the empirical tools needed for this purpose. We show how consumption‐based measures of economic welfare can be integrated into the national accounts without changing their production or asset boundary. At the same time, explicit normative and methodological choices are required to select a social welfare function. The paper provides guidance how to make these choices transparent and how to present social welfare measures.